Spotify Ad Effectiveness

Jul 2017 RadioWorks Blog

Spotify has diversified advertising beyond just audio spots with video and podcast options also available. New Research from Neilsen Catalina Solutions has shown that those who use cross platform, multi format campaigns on Spotify tend to have more effective campaigns.

The study shows total incremental sales per 1,000 impressions for Spotify ads for 11 major brands was 25 percent higher than average. The study concluded that each 1,000 impressions generate $24 of revenue for clients. In £s that is circa £18.50 revenue for every 1,000 impressions.

“For every thousand impressions we ran, we created 24 dollars of revenue. The Nielsen benchmark is $19.64,” said Jeff Rossi, Head of Industry, at Spotify. The study looked at ads that ran on the platform over a 12-month period, promoting non-alcoholic beverages, food, snacks, personal care and home care products.

Campaigns that ran on both mobile and desktop saw 39% higher incremental sales over campaigns running on either/or, and a combination of ad formats – audio and display – saw the greatest return; reminding us that Spotify is a platform that users can interact with passively and actively. For example starting a playlist and letting it run in the background makes audio ads most effective. But users also watch videos or actively browse songs and artists, so video and display ads also have a place.

If you want to find out more about advertising on Spotify – we can help! Give us a call on 0207 907 0670 and we can talk you through the process and work out the best option for you.